US30 Short ideaTechnical Analysis:
Resistance Levels: The price of US30 has been testing a key resistance level, which aligns with a previous supply zone. This area has proven to be a tough barrier for the index, indicating that sellers are stepping in as the market approaches these levels.
Trendline: A descending trendline from the recent highs shows that the market is still respecting a bearish structure, further validating the potential for a downward move.
Fibonacci Retracement: Using the recent swing high and low, the price retraced to a 61.8% Fibonacci level, a common reversal area for sell setups.
Moving Averages: The price remains below the 50-period moving average on the 1-hour chart, signaling short-term bearish momentum.
Volume Profile: A spike in volume during the last test of the resistance indicates the possibility of aggressive selling.
Fundamental Factors:
Macroeconomic Data: Recent data such as NFP (Non-Farm Payrolls) and ISM reports have added volatility to the market, with investors seeking safer assets. Weak economic signals can trigger a sell-off in indices like US30.
Interest Rate Expectations: With the possibility of further rate hikes on the horizon, risk sentiment may shift towards a bearish tone for equity indices, including US30.
Key Levels to Watch:
Entry Point: Looking for a sell entry around the 42,230 resistance zone if the price confirms a reversal signal.
Stop Loss: Setting stop above the recent highs at 42,300 allowing room for minor fluctuations.
Take Profit: A conservative target could be the 42,050 support zone, where the market previously found buying interest.
Confirmation:
Watch for bearish candlestick patterns (e.g., engulfing or pin bar) and increased selling volume near resistance. If the price breaks below a recent consolidation zone with momentum, it could signal the continuation of a downward move.
This setup aims to capitalize on technical confluences aligning with potential bearish sentiment in the broader market context.
Personally risking 0.5% of my equity.
